I'm bitten by this one too. Here's a patch.
diff -ru xaos-3.4/debian/menu xaos-3.4-patched/debian/menu
--- xaos-3.4/debian/menu 2010-01-20 17:14:13.0 +0100
+++ xaos-3.4-patched/debian/menu 2010-01-21 01:04:31.0 +0100
@@ -1,6 +1,6 @@
?package(xaos):needs=text
Package: xaos
Version: 3.4-1
Severity: normal
Hello Debian QA Group,
xaos menu entry do not work.
The file /usr/share/menu/xaos reads
?package(xaos):needs=text section=Applications/Graphics \
title=Text Xaos longtitle=Text Xaos fractal zoomer \
command=/usr/bin/xaos -driver aa'
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